Open Finance Tech Stack; How embedded finance drives new revenue; How can Open Banking be used for credit business?;
Hi Fintech Fans, Let me walk you through some exciting insights and reports in the fintech world
Insights & Reports:
1️⃣ The best money transfer companies by customer ratings in 2024
2️⃣ How can Open Banking be used for credit business?
3️⃣ How embedded finance drives new revenue
5️⃣ European Mobile Payments Report 2024
6️⃣ How are financial services providers leveraging AI today?
Curated News:
1️⃣ Credit fintech Petal agrees sale to Empower
2️⃣ Fintech giant Stripe raises nearly $694m in funds
3️⃣ Revolut Valuation Raised 45% By Schroders Shows Fintech Rebound
TL;DR:
Insights & Reports Analysis:
Hi Fintech Fans, Let me walk you through some exciting insights and reports in the fintech world. First up, we’ve got the latest on Money Transfer Company Ratings for 2024. It’s a mixed bag of ratings, but overall, customers seem pretty satisfied across the board. From Trustpilot to app store ratings, companies like Ria, TransferGo, Wise, and Flutterwave are standing out. Then, there’s the fascinating realm of Open Banking for Credit Business. It’s all about leveraging data securely to enhance KYC, offer personalized products, and conduct thorough credit risk analysis using alternative data and AI models. Moving on to Embedded Finance Revenue Generation, it’s a game-changer. Think Square, offering financial services within platforms, boosting revenue streams and user engagement. The Open Finance Tech Stack is another crucial aspect, ensuring interoperability and security with cloud solutions, core banking systems, and robust APIs. Meanwhile, the European Mobile Payments landscape is buzzing with competition and innovation, with success factors including collaboration and market adaptability. Lastly, AI is reshaping both fintechs and traditional banks, driving innovation and efficiency in product offerings and customer engagement.
News Highlights:
Let’s dive into some curated news making waves in the fintech realm. First up, Revolut’s valuation has seen a significant boost, with Schroders indicating a whopping 45% increase compared to last year. This uptick hints at a positive shift in investor sentiment towards the fintech sector. Meanwhile, Stripe, a juggernaut in the industry, recently secured a hefty $694.2 million through a stock sale, further solidifying its position in the market after being valued at $65 billion just in February. Additionally, Empower Finance has made strategic moves, agreeing to acquire US credit fintech Petal and finalizing the acquisition of Cashalo, based in the Philippines.
Insights & Reports
The best money transfer companies by customer ratings in 2024
Of the 12 companies FXC Intelligence assessed for this report, most had strong combined customer ratings in 2024.
Nine of the 12 had a Trustpilot rating of over 4 out of 5, with one of the remaining companies (World Remit) only narrowly missing this at 3.9. Average app store ratings were even stronger, with every company achieving a 4 or above.
However, there was some variation in country and operating system versions.
The average ratings for iOS across both the UK and US were higher than the equivalent for Android, with Google Play seeing an average of 4.5, compared to the App Store’s 4.7. While some player’s Google ratings were closer to their Apple ratings, not one had a higher average Play score, which may reflect the higher development priorities placed on iOS versus Android by many companies.
On a country-level basis, the average ratings were very close, with the UK scoring slightly higher at 4.63, compared to the US’s 4.58. However, this converged more when taking into account operating systems.
How embedded finance drives new revenue
With embedded finance, Vertical SaaS businesses can increase revenue per user by 2–5x, according to a16z.
How, exactly? Rather than sending money to their customers’ external bank accounts, brands like Square are using embedded finance to keep those funds “on the platform.”
When a Square merchant receives a card payment, they deposit those funds to their Square Checking account, which generates revenue from interest.
From there, they start making purchases using their Square Checking debit card, which generates interchange revenue. Then they apply and get approved for a business loan, which generates lending revenue.
You also amplify the following:
🔹 Acquisition. By solving more problems for your customers, you set yourself apart from competitors and make it easier to acquire new users.
Curated News
Revolut Valuation Raised 45% By Schroders Shows Fintech Rebound
One of Revolut’s shareholders thinks the firm is 45% more valuable than a year ago, in a sign that investors are starting to thaw on the fintech sector.
